Ofcom considering trade of unused spectrum
Regulator proposes deregulation to create market driven environment
Communications regulator Ofcom is proposing the deregulation of private radio licences to make spectrum more flexible.
The deregulation would allow businesses to buy and sell bandwidth that they are not using, giving more firms access to the private radio spectrum.
The licences are used for voice and data communications by companies such as taxi firms and utilities, and the regulator wants to consolidate the types available from 21 to three.
A spokeswoman at Ofcom says it wants to change the way licences are administered in three main areas.
‘There will be new online procedures for getting licences to reduce administration, and we want to extend them to run for up to five years with a one-off payment of £75,’ she said.
‘We are aiming to liberalise the system through which bandwidth can be used – which has been in place for the past 50 years – so we could allow private business users to trade their spectrum with each other.’
The ability to trade pieces of spectrum freely within an open market will allow users to exploit emerging radio technologies and use bandwidth more efficiently, says the Ofcom spokeswoman.
Flexibility will allow firms to only use what they need, says Quocirca analyst Elaine Axby.
‘It might well free up lots of spectrum for other businesses to use that would not have had a chance to use it because other firms were holding on to it as part of their allotment,’ she said.
‘The action of the free market will be more efficient than a regulatory body in this case.’
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